Volatility

Examine the accuracy of the following statement: "Given that burgers and fries are complementary goods, if the price of fries increases the demand for both goods will fall."

What will be an ideal response?

According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then all of the following are likely to happen except

A) the country's total production will fall. B) future economic growth is enhanced. C) the production possibilities frontier will be shift outward in the future. D) fewer goods will be produced for consumption today.